The JSE began the day slightly negative as markets await Ben Bernanke's speech later on in the day.
|||The JSE began the day slightly negative as markets await Ben Bernanke's speech later on in the day.
A local trader said: “Everybody's eyes are looking to the speech. There is a belief that this will give some direction going forward.”
He said contrary to expectations of a rebound, the rand was still quite weak. However, this was elevating export performances and contributing support to the local market as a wave of bad news came out of Europe.
By 09:07 local time, the JSE all-share index had lost 0.16%. Gold stocks collected 1.17%, while platinum miners dropped 0.82% and resources shed 0.42%. Banks gave up 0.32%, while industrials dipped 0.12% and financials barely moved (-0.01%).
The rand weakened to 7.73 to the dollar, from 7.64 at the JSE's close on Tuesday. Gold traded at US$1,812.85 a troy ounce from US$1,804.45 at the JSE's previous close, while platinum was at US$1,788.50/oz, from US$1,783.50/oz previously.
Dow Jones Newswires reported that Asian stocks were mixed in edgy trade on Wednesday as dealers awaited the end of a US Federal Reserve meeting later in the day, with most expecting new monetary easing measures to jumpstart the economy. Investors also remain nervous about Europe's sovereign debt crisis and concerns over a possible Greek default.
European bourses are likely to start lower with plenty of tension in the markets ahead of the Fed's announcement and more news on the Greece debt dilemma.
Greece is facing an estimated EUR4.6 billion ($6.3 billion) shortfall in its efforts to cut its 2012 budget deficit, according to an International Monetary Fund staff report presented to the fund's executive board last week.
Unless Athens can come to an arrangement with auditors to release EUR8 billion from its EUR110 billion rescue package agreed last year, its reserves to pay pensions and wages will run out next month.
Although overall sentiment on Tuesday was bullish, some negative issues hit individual stocks. French banks in particular were hit by reports that the Bank of China had stopped foreign exchange forwards and swaps trading with several European banks as a consequence of the continuing debt crisis in Europe.
US stock futures are higher on Wednesday, after a rally in US stocks largely evaporated late in Tuesday's session following reports that Greece's negotiations with international inspectors may drag out, and could still fall apart.
The Federal Open Market Committee, which started its two-day rate-setting meeting on Tuesday, is largely expected to announce a stimulus measure, where the Fed would sell short-term Treasury holdings and buy longer-term debt in an effort to push down long-term interest rates, making borrowing cheaper for homeowners and companies. This is known as “Operation Twist,” which has its historical precedent in a similar move enacted in 1961.
On the JSE, Anglo American (AGL) lost R2.44 to R295.50, BHP Billiton (BIL) was down R1.39 to R236.20, and Sasol (SOL) dipped R2.85 to R347.15.
Among gold shares, AngloGold Ashanti (ANG) moved R4.30 or 1.18% higher to R369, and Harmony (HAR) gathered R1.76, or 1.74% to R103.15.
In platinum stocks, Northam Platinum (NHM) picked up 33 cents or 0.93% to R35.72, Aqaurius (AQP) generated 81 cents or 3.07% to R27.18 and Royal Bafokeng (RBP) dipped R1.06 or 1.71% to R61.
Among diversified miners, Arcelormittal (ACL) declined 60 cents or 1.02% to R58.50.
Pallinghurst Resources (PGL), the specialist natural resources investment company, on Wednesday reported the widening of its interim net loss after what it called “a turbulent period”.
A net loss of US$46.7 million was reported for the six months to end June. This compares to a net loss of US$1.3 million in the six months to end June 2010.
The company posted a net profit of US$116 million for the year to end December 2010.
A basic and diluted loss per share of US$0.10 was recorded for the first half of the 2011 year. Basic and diluted earnings per share were US$0.24 in 2010.
Shares in the company were trading 4 cents or 1.27% lower at R3.10.
In Industrial stocks, British American Tobacco (BTI) added R5.25 to R345.
Sovereign Food Investments (SOV), a mid-tier poultry producer, on Wednesday said it expected its interim headline and basic earnings per share to be between 65% and 80% lower.
Headline and basic earnings per share were 2.7 cents for the six months to end August 2010.
It also advised that headline earnings and basic earnings for the six months to end August 2011 were expected to be between 50% and 70% lower than the comparative figures.
The company reported headline earnings and basic earnings of R1.3 million for the first half of last year.
Its shares were down by 5 cents or 1.06% to R4.65.
Media group Naspers (NPN) weakened R4.83 or 1.33% to R358.17. - I-Net Bridge
Source: http://www.iol.co.za/jse-slightly-down-awaits-data-1.1141847
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